These Female Leadership Programs Are Helping Bridge The Gender Gap In India's Startups

Indian entrepreneur, Aastha Gandhi, 23, poses at her Melt In gelato shop in Ahmedabad on International Women's Day, March 8, 2013. (SAM PANTHAKY/AFP/Getty Images)

Being a female entrepreneur in India is a challenge like no other. According to the National Sample Survey Organization’s Sixth Economic Census, only 14% of Indian businesses are led by women, most of which are either small-scale or self-financed. While women form a significant part of the Indian workforce, a breakthrough number of women-led businesses is yet to develop.

Skewed female representation is a problem in the country’s startup industry too. NASSCOM research states that only 9% of Indian startup founders are women. Gender discrimination while fundraising, socio-cultural biases, and under-representation of women in technology are some of the reasons holding women back in this area.

And this is leading some in the entrepreneurial community to launch initiatives aimed at boosting the number of women in the startup community.

Female entrepreneurs in India can now avail of multiple options to scale their startups, raise funds and seek professional assistance to build their business. (Photo Credit: Shutterstock)

Raising funds remains one of the biggest hurdles faced by women due to investor perception that they are not ambitious enough to lead a startup. Ankita Vashistha, founder of SAHA Fund, says, “Many investors believe women-led businesses are not scalable. They feel domestic obligations will tie down women, due to which their startups don’t get a fair valuation.”

How wrong they are. Fitness aggregator Fitternity is one of the startups supported by SAHA Fund. They raised $1 million in July 2015 followed by $1 million in a pre-Series A in June 2017. Around 300,000 users have transacted on Fitternity and annual sales run-rate is $3 million. Founder Neha Motwani says, “SAHA Fund helped us with fundraising, provided business inputs, introduced us to key stakeholders and advocated the brand. Women like Ankita are upping the ante for female entrepreneurs.”

Inherent diffidence of many Indian women is another cause for concern. Culturally, women in India hesitate to highlight their personal and professional accomplishments - something that Lathika Pai, founder trustee of SonderConnect is addressing through her organization. "Investors want to support founders who are confident, sincere about scaling and seeking to have an impact on the industry,” says Pai. SonderConnect tailors mentorship programs and technical workshops, where startups can fine-tune business pitches and investor engagement. Seasoned marketing professionals, legal experts, HR personnel and contract negotiation experts provide training, and mentors include senior executives from LinkedIn, Microsoft, Aegis, IBM, Target, Ernst & Young and Deloitte.

HappyHealthyMe, India’s first organic food brand and grocery store, is supported by SonderConnect. Aside from providing home delivery in Bangalore, they plan to launch country-wide shipping and initiate sales on Amazon. SonderConnect is helping them raise USD 1 million. Co-founder Namu Kini says, “Mentorship for an entrepreneur is underestimated. We are getting targeted assistance from the right industry experts.”

Technology forms an integral part of India’s startup success, but the number of experienced women in tech is limited. According to Catalyst, 41% of Indian women are enrolled in universities to pursue degrees in technology, finance and marketing, but form only 25% of the technology workforce.

Geetha Kannan, India head and managing director of Anita Borg Institute (ABI) feels more women need to be part of India's tech startup story. To increase female participation in technology ventures, ABI is spearheading a contest titled Women Entrepreneur Quest (WEQ). Supported by India’s Department of Science and Technology and the Indo-US Science and Technology Forum, WEQ invites applications from Indian women entrepreneurs. Ten finalists travel to California where they interact with leading technology companies, startups and hacker-spaces. When WEQ started in 2011, they had 40 applications but the latest edition had 329 applications.

Cultural and social factors withhold Indian women from progressing professionally. A report by Center for Talent Management said that 80% of Indian women leave the workforce to fulfill eldercare responsibilities. Many Indian women are expected to balance their professional and personal commitments, leading to doubts about their diligence to run a business. Kannan says, “There is a reluctance to invest in women-led startups. Founders are not only questioned about business plans but also about marital status and family commitments.”

Driving the change from within

Neha Singh is one of India's most successful women entrepreneurs. The IIT-Bombay and Stanford alumnus is the co-founder of research analytics platform Tracxn. Investors include Ratan Tata, Flipkart's Binny and Sachin Bansal, Nandan Nilekani, Mohandas Pai and WhatsApp vice-president Neeraj Arora. Singh credits her startup's success to product strength, sincerity to scale and strong investor support. “Opportunities for women entrepreneurs are immense. Regardless of who leads them, investors fund startups with the hope of seeing their money grow.”

Singh's startup success can be a widespread phenomenon. Pai says, “Heading a startup is a full-time job, not an extension of one’s lifestyle.” For women-led businesses to be taken seriously, a kind of cultural and social rewiring has to happen across society, feels Kannan.

Vashistha is bullish about female entrepreneurs in India. “We are naturally good at multi-tasking, leading and working with a team, have tremendous attention to detail, are empathetic and know how to listen. These are great skills for any startup. With time, more women-led businesses will take center stage.”

I have seven years of experience as a journalist, having worked in television and print in India. I began my career at NDTV, India's leading news television channel, followed by stints in Deccan Chronicle, Bangalore Mirror and Alain Charles Publishing. Currently, I work for...